Flash: Go long AUD/NZD - Societe Generale

FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale recommends that investors consider going long AUD/NZD.

He begins by noting that he expects the AUD will catch its breath now that last weeks RBA cut is digested, and he sees virtually no chance of another cut as early as June. On the data front, he notes that Australian exports are recovering despite the China slowdown. On the other hand, he adds that the RBNZ is willing to prevent NZD appreciation via intervention, while the long positioning is crowded. He finishes by writing, “Finally, the AUD/NZD has a low correlation to broader market risk factors.”